14 Beta is a measurement of the relationship between a security's returns and the general market's retun D True False 15 A stock with a beta of 1 0 would earn the risk free rate 16 The minimum rate of return necessary to attract an investor to purchase or hold a security is called t capital 17 The cost of retained earnings takes into account flotation costs 18 The firm financed completely with equity capital has a cost of capital equal to the required return stock 19 Assuming an after tax cost of preferred stock of 12 and a corporate tax rate of 40 , a firm mus least $20 before tax on every $100 invested True 20 By investing in different securities, an investor can lower his exposure to risk True 14 Beta is a measurement of the relationship between a security's returns and the general market's retun D True False 15 A stock with a beta of 1 0 would earn the risk free rate 16 The minimum rate of return necessary to attract an investor to purchase or hold a security is called t capital 17 The cost of retained earnings takes into account flotation costs 18 The firm financed completely with equity capital has a cost of capital equal to the required return stock 19 Assuming an after tax cost of preferred stock of 12 and a corporate tax rate of 40 , a firm mus least $20 before tax on every $100 invested True 20 By investing in different securities, an investor can lower his exposure to risk True

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14  Beta is a measurement of the relationship between a security's returns and the general market's retun D  True False 15  A stock with a beta of 1 0 would earn the risk free rate  16  The minimum rate of return necessary to attract an investor to purchase or hold a security is called t capital  17  The cost of retained earnings takes into account flotation costs  18  The firm financed completely with equity capital has a cost of capital equal to the required return stock  19  Assuming an after tax cost of preferred stock of 12  and a corporate tax rate of 40 , a firm mus least $20 before tax on every $100 invested  True 20  By investing in different securities, an investor can lower his exposure to risk  True 14  Beta is a measurement of the relationship between a security's returns and the general market's retun D  True False 15  A stock with a beta of 1 0 would earn the risk free rate  16  The minimum rate of return necessary to attract an investor to purchase or hold a security is called t capital  17  The cost of retained earnings takes into account flotation costs  18  The firm financed completely with equity capital has a cost of capital equal to the required return stock  19  Assuming an after tax cost of preferred stock of 12  and a corporate tax rate of 40 , a firm mus least $20 before tax on every $100 invested  True 20  By investing in different securities, an investor can lower his exposure to risk  True

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14- Beta is a measurement of the relationship between a security's returns and the general market's retun D. True False 15- A stock with a

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